Radcom RDCM reported third-quarter 2024 non-GAAP earnings per share (EPS) of 23 cents, surpassing the Zacks Consensus Estimate by 21%. The bottom line expanded 53.3% year over year.

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Revenues in the quarter were a record $15.8 million, beating the Zacks Consensus Estimate by 5.5%. Total revenues jumped 20% year over year. With a focus on providing advanced 5G assurance solutions and incorporating cutting-edge artificial intelligence technologies, RADCOM has positioned itself to capitalize on the emerging demands of the 5G market and enhance customer experience.

Radcom Ltd. Price, Consensus and EPS Surprise

Radcom Ltd. price-consensus-eps-surprise-chart | Radcom Ltd. Quote

RDCM’s buyout of Continual in May 2023 has strengthened its service assurance portfolio and resulted in a seven-figure, multi-year deal with a North American operator for RADCOM’s enhanced mobility experience analytics solution during the third quarter.

In response to the robust financial performance, RDCM’s shares gained 11.6% and closed the trading session at $11.99 on Nov. 13. Shares of the company have gained 49.6% in the past year versus the sub-industry’s growth of 9.8%.

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Other Details

Non-GAAP net income for the quarter was $3.7 million compared with $2.4 million a year ago.

Non-GAAP operating income was $2.6 million, up 92% year over year. Operating margin improved 7% year over year to 17%. Increased revenues and prudent expense management resulted in the uptick.

Non-GAAP operating expenses for the period were $9.3 million, up from $8.6 million in the prior-year period, due to a substantial investment in sales and marketing and general and administrative expenses to capture emerging opportunities in the 5G market.

Cash Flow and Liquidity

As of Sept. 30, 2024, RDCM had $90.2 million in cash, cash equivalents and short-term bank deposits. The company exited the third quarter with a cash flow of $4 million. This represents RDCM’s highest-ever cash balance, showcasing a solid liquidity position that enables it to reinvest in technology, acquisitions and strategic growth.

Increased Revenue Guidance for 2024

Driven by healthy momentum, RDCM has raised its revenue guidance for full-year 2024 to $59-$62 million. This is an increase from the previous guidance of $58-$61 million, and it reflects the company’s confidence in its ability to achieve a fifth consecutive year of revenue growth and increased profitability.

RDCM’s Zacks Rank

RDCM currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Performance of Other Companies in the Broader Tech Space

Intrusion Inc. INTZ incurred a third-quarter 2024 loss of 35 cents per share compared with a loss of $2.78 a year ago. The bottom line was narrower than the Zacks Consensus Estimate of a loss of 42 cents.

Shares of INTZ lost 91.5% in the past year.

BCE Inc. BCE reported third-quarter 2024 adjusted EPS of C$0.75 (55 cents) compared with C$0.81 in the prior-year quarter. The Zacks Consensus Estimate was pegged at 57 cents.

Shares of BCE lost 31.1% in the past year.

Itron Inc ITRI reported non-GAAP EPS of $1.84 for third-quarter 2024, which beat the Zacks Consensus Estimate by 62.8%. The company reported earnings of 98 cents in the prior-year quarter.

Shares of ITRI surged 80.3% in the past year. 

 

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